Your issue may be the Record ID field in the second screenshot. Rather than your "Opportunity ID" it should probably be the Airtable Record ID, which is identified in the trigger. That problem would also result in weird looking Record ID displayed in screenshot 3.
Yeap @DisraeliGears01 's got it right
Here's a screenshot of how to select it:

I tried that but then I get "The Record Doesn't Exist".
I then went and looked up the Airtable Record ID for both and they don't match since it's not duplicating the record but creating a new one.
Below is the original automation to create a record in the AE<>RAE tab from the SFDC report when "record matched conditions" as "Opportunity Id" is not empty.
In this case, should I have not have it create a record but simply have it duplicated in the AE<>RAE Tab? That way it would have the same Airtable ID ?
Ah, I didn't notice how you were working across tables.
The issue is your update automation can't identify the records in the AE Worksheet, because the trigger is referring to an Airtable Record ID in the SFDC table. You need to add a "Find Records" step that matches the records in the tables.
I've attached a screenshot of a similar one I'm using to correlate a registrations table with a contacts table. For your instance, the trigger ids a record in SFDC. Then for Find, you say "Find records in AE where Opportunity Name = Opportunity Name from IDed record in SFDC". Now the automation knows the record it needs to edit in the AE table, and you use the Record ID output from the Find action in the Record ID field for your update action.
Ah, I didn't notice how you were working across tables.
The issue is your update automation can't identify the records in the AE Worksheet, because the trigger is referring to an Airtable Record ID in the SFDC table. You need to add a "Find Records" step that matches the records in the tables.
I've attached a screenshot of a similar one I'm using to correlate a registrations table with a contacts table. For your instance, the trigger ids a record in SFDC. Then for Find, you say "Find records in AE where Opportunity Name = Opportunity Name from IDed record in SFDC". Now the automation knows the record it needs to edit in the AE table, and you use the Record ID output from the Find action in the Record ID field for your update action.
Thank you so much!!!